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IndusInd Bank Stock Surges Over 3%, Reaches Highest Level in 52 Weeks Following Encouraging Q1 Business Update

Positive Q1 Business Update Propels IndusInd Bank Stock to 52-Week High, Witnessing a Jump of Over 3%

IndusInd Bank Achieves Robust Q1 FY24 Performance, Shares Surge Over 3% to Reach 52-Week High

IndusInd Bank, a leading private lender, recorded impressive results for the April to June quarter of the fiscal year 2023-24, causing its shares to soar by more than 3% and hit a 52-week high of Rs 1,413.55 per share on the BSE. The bank reported a substantial increase of 21% in its net advances, reaching Rs 3,01,041 crore during the quarter, compared to Rs 2,47,960 crore in the corresponding period last year. Sequentially, the advances grew by 4%, rising from Rs 2,89,924 crore in the previous quarter, ending in March 2023.

Moreover, IndusInd Bank witnessed a notable rise in its deposits, which stood at Rs 3,47,356 crore as of June 2023. This reflected a year-on-year growth of 15% from Rs 3,03,078 crore and a quarter-on-quarter growth of 3% from Rs 3,36,438 crore. The bank highlighted that retail deposits and deposits from small business customers reached Rs 1,50,691 crore by the end of June 2023, compared to Rs 1,43,021 crore in the previous quarter.

The positive performance of IndusInd Bank has been well-received by investors, as its shares traded 2.29% higher at Rs 1,398.70 on the National Stock Exchange (NSE) at 1:30 pm.

Recently, on July 4, IndusInd International Holdings Limited (IIHL), the bank’s promoter, received approval from the board to increase its stake in IndusInd Bank. The move involves an appraisal of up to $1.5 billion, allowing IIHL to raise its current stake of 15% to 26%, with the aim of acquiring Reliance Capital.

Over the past year, IndusInd Bank’s shares have witnessed an impressive surge of over 71%. Analysts at Prabhudas Lilladhar Pvt Ltd believe that the bank’s loan growth is expected to slightly outperform the overall system, projecting an approximate 3% quarter-on-quarter increase. The firm emphasized the positive trend in retail deposit accretion, with granular deposits reaching a share of 43.4% in Q1’23 compared to 42.5% in Q4’23 and 41.0% in Q1’23.

Based on the bank’s performance, Prabhudas Lilladhar Pvt Ltd maintains a buy rating on IndusInd Bank’s stock, with a target price (TP) of Rs 1,350.

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